Help (not) wanted—service sector no respite for unemployed

A weekly presentation of downloadable charts and short analyses designed to graphically illustrate important economic issues. Updated every Wednesday.

Snapshot for November 14, 2001.

Help (not) wanted—service sector no respite for unemployed Recessions invariably mean lost jobs for many Americans, and households that experience job loss will have to cope with the loss in income. Typically these households have used a variety of strategies to cope with the financial hardship of unemployment. Many workers will file for unemployment insurance benefits, but most will not be able to receive them due to the myriad rules and regulations governing the system. Some workers will spend their savings, sell their stocks, or tap into their retirement funds in order to make ends meet. For many workers, savings will be tapped out long before the recession ends. The still-employed spouse of a laid off worker may have to take on more hours or a second job to help a household make ends meet.

In the past, many of the jobless found temporary employment in the lower wage service sector. As the figure shows, hotel and restaurant employment increased as a share of the labor force during most of the previous recessions. Unfortunately, this sector has not seen much job growth since 1997, and the tragedies of September 11 have resulted in large-scale job loss in these sectors. Consequently, these industries, once a safe haven for those recently laid-off, will shed workers, only adding to this recession’s list of economic woes.

Sign up to stay informed

Track EPI on Twitter

Economic Policy Institute

EPI is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. EPI’s research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans.